Rural India Self Development Trust, Rajahmundry V. THE ITO, WARD -1, Rajahmundry

ITA 411/VIZ/2013

• Counselvise Citation: 41125314 RSA 2013
• Duration Of Justice: 6 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 30-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B BABU RAO
• Keywords: Depreciation

Judgement Text

ITA NO.411/VIZAG/2013 RURAL INDIA SELF DEVELOPMENT TRUST, RJY IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO. 411 /VIZAG/ 20 13 ASSESSMENT YEAR : 2008 - 09 RURAL INDIA SELF D EVELOPMENT TRUST RAJAHMUNDRY VS. ITO WARD - 1 RAJAHMUNDRY (APPELLANT) (RESPONDENT) PAN NO.AAATR 3048F ASSESSEE BY : SHRI C. SUBRAHMANYAM, CA REVENUE BY : SHRI B. BABU RAO DATE OF HEARING : 12.12.2013 DATE OF PRONOUNCEMENT : 13 .12.2013 ORDER PER B. RAMAKOTAIAH:- THE ONLY DISPUTE ARISING IN THIS APPEAL BY THE ASS ESSEE AGAINST THE ORDER OF THE LD. CIT(A)-11, MUMBAI (CAMP AT VISAKHA PATNAM) DATED 15.3.2013 IS WITH REFERENCE TO CLAIM OF DEPRECIATIO N DISALLOWED BY THE AO ON THE REASON THAT COST OF THE ASSET HAS BEEN ALLOWED AS A DEDUCTION IN THE PREVIOUS YEARS WHILE WORKING OUT THE APPLICATION OF INCOME. AT THE OUTSET IT WAS SUBMITTED THAT THIS ISSUE IS FAIRLY COVERED BY THE DECISION OF THE COORDINATE BENCHES IN THE CASE OF ITO VS. GSL TRUST IN ITA NO.372 AND 220 & OTHERS/VIZAG/2008 DATED 11.8.2011. 2. THE HONBLE PUNJAB & HARYANA HIGH COURT IN THE C ASE OF CIT VS. AMC PIPLI 330 ITR 16 HAS HELD AS UNDER: IN THE PRESENT CASE, THE ASSESSEE IS NOT CLAIMING D OUBLE DEDUCTION ON ACCOUNT OF DEPRECIATION AS HAS BEEN SU GGESTED BY LEARNED COUNSEL FOR THE REVENUE. THE INCOME OF THE ASSESSEE BEING EXEMPT, THE ASSESSEE IS ONLY CLAIMING THAT DE PRECIATION SHOULD BE REDUCED FROM THE INCOME FOR DETERMINING T HE PERCENTAGE OF FUNDS WHICH HAVE TO BE APPLIED FOR THE PURPOSES OF THE TRUST. THERE IS NO DOUBLE DEDUCTION CLAIMED BY THE ASSESSE E AS CANVASSED BY THE REVENUE. JUDGEMENT OF THE HONBLE SUPREME C OURT IN ITA NO.411/VIZAG/2013 RURAL INDIA SELF DEVELOPMENT TRUST, RJY 2 ESCORTS LTD. & ANR. (SUPRA) IS DISTINGUISHABLE FOR THE ABOVE REASONS. IT CANNOT BE HELD THAT DOUBLE BENEFIT IS GIVEN IN A LLOWING CLAIM FOR DEPRECIATION FOR COMPUTING INCOME FOR PURPOSES OF S . 11. THE QUESTIONS PROPOSED HAVE, THUS, TO BE ANSWERED AGAIN ST THE REVENUE AND IN FAVOUR OF THE ASSESSEE. 3. RESPECTFULLY FOLLOWING THE ABOVE, WE ARE OF THE OPINION THAT THE AUTHORITIES ARE NOT CORRECT IN DISALLOWING THE CLAI M OF DEPRECIATION FOR COMPUTING THE INCOME FOR THE PURPOSE OF SECTION 11. ACCORDINGLY, THE GROUNDS OF THE ASSESSEE ARE ALLOWED. ASSESSING OFF ICER IS DIRECTED TO MODIFY THE ORDER ACCORDINGLY. 4. IN THE RESULT, THE APPEAL IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 13 TH DEC13 SD/ - SD/ - ( SAKTIJIT DEY ) ( B. RAMAKOTAIAH ) JUDICIAL MEMBER ACCOUNTANT MEMBER VG/SPS VISAKHAPATNAM, DATED 13 TH DECEMBER, 2013 COPY TO 1 ITO WARD - 1, RAJAHMU NDRY 2 RURAL INDIA SELF DEVELOPMENT TRUST, 90 - 1 - 5/1 SWARAJ NAGAR, ALCOT GARDENS, RAJAHMUNDRY 3 THE CI T, RAJAHMUNDRY 4 THE CIT (A) , RAJAHMUNDRY 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM